National Factoring Company, one of the largest providers of factoring services in Russia, has earned net profit in amount RUB 75.3 mln following the results of 2009.

The Chairman of the Management Board of NFC, Mr. Roman Ogonkov comments: “We are glad to present the results of our activity for the year ended: the profit earned demonstrates that we have found the key to the effective management of the business in unfavourable market conditions, due to the general economical recession in the country, expressed in decrease of GDP, deterioration of payment discipline, decline of consumers demand and, as a result, decrease of sales and purchases of Russian companies. Our strong positions in respect of the quality of provided services, diversified product line and IT-technologies unique for the Russian market allow us to expect a stable development in 2010”.

Also Mr. Ogonkov pointed out that in 2010 NFC sees an opportunity for the increase of the share of other products than classic recourse factoring. Thus, the increase of turnover of the product “Supplier Finance” (product for the retail chains and large buyers aimed at developing an efficient system of purchasing goods from suppliers on credit terms) is expected, with that the most active growth is expected due to the expansion of this product among regional chains and manufacturers. Besides, Mr. Roman Ogonkov expressed confidence that the traditionally considerable share of non-recourse factoring in NFC’s portfolio (37% in 2009, 36% in 2008) can be increased due to the amendments made in 2009 to the product “Factoring-Garant” (NFC’s guarantee for the buyer’s liabilities to settle an invoice on open account terms). Now the Clients do not have to transfer their turnover to the factor’s account - the Client continues to receive buyers` payments to his account and at the same time obtains protection from the Buyers non-payment provided by NFC. It is worth pointing out that during the second half of the year the turnover of non-recourse factoring increased by 123% as compared with the first half of 2009 and accounted to RUB 12.86 bln year on year.